Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $248,000 for November, $288,000 for December, and $220,000 for January Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of sales The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $17,500. Monthly depreciation is $20,000 . ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of 5624,000 accumulated depreciation Total assets 20,000 79,500 227,400 976,000 $1,302,900 $ Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total lohistoloo and otnothattore amit 244.000 745,000 313.900 on 1 Balance Sheet October 31 de ani AMATERIALE Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets $ 20,000 79,500 227,400 976,000 $1,302,900 Liabilities and Stockholders Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity . 244,000 745,000 313,900 $1,302,900 Expected cash collections in December are